We have cleared two machine under DSIR (R &D Unit) to our customer on 25/11/14 in one invoice without payment of excise duty.
We have paid @6% on assessble value of invoice as payment of excise duty to department in next month under the Excise Law Act.
Now, our customer requirement is they want to transfer one machine to their excisable unit on permanent basis and request us for solution for the same.They are ready to pay excise duty on the same machine which they want to transfer to their excisable unit.
Please advise which procedure we have to adopt for the above transaction.
Customer Seeks Guidance on Transferring Machine with Duty Credit Under Rule 3(5) Cenvat Credit Rules, 2004 A company cleared two machines under DSIR (R&D Unit) to a customer without paying excise duty, later paying 6% duty on the invoice value. The customer now wants to transfer one machine to another excisable unit and seeks advice on the procedure. The response suggests obtaining a certificate from excise authorities confirming the duty payment, allowing the customer to claim credit and clear the machine by reversing the duty under Rule 3(5) of Cenvat Credit Rules, 2004. Alternatively, the machine could be returned and re-cleared under Rule 16 of CER, 2002. (AI Summary)
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